5 Benefits of Getting a Cash Advance

Times are tough with inflation being high. In fact, about two-thirds of all adults living in the United States are living paycheck to paycheck, just barely making ends meet. This makes accruing savings for a rainy day (or season, as the case may be) virtually impossible.

If you find yourself stuck in a financial pickle, you might want to consider taking out a cash advance to get yourself out of the red. But is a cash advance right for everyone? Honestly, no, it is not. If you know you’re going to struggle to make payments on time, then you might need to pursue another avenue of assistance.

However, if you can make repayments on time, cash advances do have their benefits. Quick, convenient, and a way to build credit, cash advances offer you the five following benefits that you can take advantage of – as long as you keep your borrowing below 30 percent of your available credit per month.

Quick Cash When You Need It

Getting an installment loan or standard personal loan can be downright difficult, and there is usually a lengthy waiting period just to find out if you have been approved. Getting a cash advance is much quicker. You won’t have as many documents to fill out and file, plus you do not have to provide an abundance of supporting documents.

Traditional loan applications are slowly moved along by most financial institutions. They could make you wait a week or two only to not approve you. And even if you get approved, it could be a week or so before you even see the money deposited into your bank. In the event of an emergency, waiting that long isn’t helpful.

Cash advances typically take only a few minutes to apply for, especially if you do it via an app. Apps let you see your options and usually deposit money onto your debit card the very same day. You won’t waste time waiting to find out whether your application got approved.

Convenience (Without Leaving the Comfort of Home)

Going to a brick-and-mortar bank for a loan can be inconvenient for a lot of people and going to a payday lender can be even more stressful. If you use a cash advance app or website, you can more easily and conveniently access an application and get it approved within minutes. You will not have to talk with a loan officer or wait for an approval – or denial – letter in the mail.

You do not need to leave the comfort of your own home or go out of your way to get a cash withdrawal or convenience check. You can do things on your schedule and remove a lot of awkwardness out of the whole situation by using a cash advance app.

Rapid Approval Time

The entire approval process is much quicker when you use a cash advance. Cash advances can help you cover all your emergency expenses when you’re in a bind, and they aren’t a limitless line of credit that permits reckless spending.

Even a one-day delay could mean major late fees on a bill you need to pay, or your electricity could be shut off. Being able to get money within minutes to cover your emergency expense can be a lifesaver.

Immediately Cover Urgent Expenses

Emergency situations have expenses that cannot wait. Sure, there are creditors out there with grace periods, but those usually involve exorbitant charges for each day you fall behind. If you get behind on bills, utility providers will send you shutoff notices and eventually turn off your services. This act of charging people who are already financially struggling is a predatory tactic, and finding a lifeline can seem impossible.

However, getting a cash advance can help you catch up on bills and avoid a plethora of late fees. Getting a cash advance can help you dodge the excess fees and higher interest rates that come with using a credit card. You might even be able to start saving up for a holiday abroad once you’ve gotten your finances back on track!

The Soft Credit Check Won’t Hurt Your Credit Score

When you apply for a traditional loan or credit card, your credit will get hit with a hard inquiry. This just deepens the debt hole that you’re already in. You might’ve established good credit by paying everything on time for years, but just a couple of hard credit checks can result in a huge fall in your credit score. When this happens, it will be hard for you to browse around for the best possible interest rate.

Cash advances only result in soft credit checks to give lenders the required information without hurting your credit score. You will see these soft credit checks on your credit report, but other credit card issuers and lenders will not be able to see them.

Don’t let your financial woes overwhelm you any longer. A cash advance can be beneficial for getting yourself out of a dire emergency. If you know you will be able to make payments on time, a cash advance can get you out of a jam without creating a bigger mess.